FTfm: EU divided over reforms to maligned fund performance rules

European Commission and MEPs warn regulator over watering down Priips performance scenarios decried as misleading

EU lawmakers and regulators are at loggerheads over how to reform wildly misleading fund performance disclosures, dealing a blow to fund managers and consumer groups hoping for a reprieve from the much-maligned rules.

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Better Finance, an advocacy group representing European savers, warned last week that lawmakers’ moves to block the proposed reforms would have a “catastrophic impact” on investors.

It said that without changes to Priips, EU savers would be stuck with performance scenarios that were “almost certain to be wrong, highly misleading, not intelligible [and] not comparable”.